Want to learn the best business insights from remarkable speakers at Slush 2023, but don’t have the time to watch the full speeches on YouTube?
You’ve come to the right place. Below is a summary of a speech by Creandum's Johan Brenner, backer of iZettle, Klarna, Pleo and others, Christian Hecker tells the story of the early days of Trade Republic and how he and the team got started and navigated to success.
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<p class="h1-rich">🤏 TL;DR</p>
Trade Republic is a savings platform that allows people across 17 European countries to invest in capital markets, with over 600 employees and operations in 17 markets. The company aims to empower young people to save and build wealth for their future, and sees a significant opportunity in the European market due to the low investment rate and lack of pension planning options. Trade Republic's goal is to build a lasting enterprise that can be a trusted partner for customers over the long term, and the action items include exploring options for expanding into new markets in Europe, developing a strategy to attract more first-time investors, engaging in negotiations with regulators, and prioritizing product development.
<p class="h1-rich">✨ Summary</p>
- Trade Republic is a savings platform that allows people across 17 European countries to invest in capital markets.
- The platform offers self-directed investing as well as a savings plan option.
- Trade Republic aims to empower young people to save and build wealth for their future.
Growth and Funding
- Trade Republic has grown rapidly, with over 600 employees and operations in 17 markets.
- The company is the largest savings platform in Europe, with millions of customers, 65% of whom are first-time investors.
- During the early stages, Trade Republic faced challenges in raising funding and obtaining a banking license.
- After years of persistence, the company secured investments and raised over €1.3 billion in funding.
Importance of Regulatory Environment
- Trade Republic views the regulatory environment as a necessary evil but also recognizes it as a significant entry barrier for competitors.
- The company believes that having a strong relationship with regulators and complying with regulations can provide a competitive advantage.
- Trade Republic sees the potential to become a major financial institution in Europe by leveraging its regulatory compliance and trust with customers.
Product Focus and Performance Culture
- Trade Republic emphasizes building a product that is easy, fast, and cost-effective for customers.
- The company aims to create a performance culture where employees are focused on delivering the best work of their careers.
- Trade Republic's intense organization and focus on results have contributed to its success in shipping new features and improving customer experiences.
Opportunity in the Market
- Trade Republic sees a significant opportunity in the European market due to the low investment rate and lack of pension planning options.
- The company aims to help individuals save for retirement and bridge the pension gap by providing accessible investment products.
- Trade Republic believes that by addressing this market need, it can become one of the most significant financial institutions in Europe.
Payment for Order Flow and Revenue Sources
- Payment for order flow is a revenue source for Trade Republic, but it only represents one-third of the company's total revenue.
- The European Union is considering banning payment for order flow, which could impact Trade Republic's revenue model.
- The company believes that the money from payment for order flow will stay within the system and can be redirected to benefit consumers.
Building to Last
- Trade Republic's goal is to build a lasting enterprise that can be a trusted partner for customers over the long term.
- The company emphasizes the importance of obtaining a banking license to ensure the safety and security of customers' money.
- Trade Republic aims to be a significant savings platform that empowers millions of people to build a private pension.